Get college assignment help at uniessay writers On December 31, 2007, the payee on a $4,500, 120-day, 10% note dated November 1, 2007, will recognize: (Points: 5) interest receivable, $150. interest receivable, $75. interest payable, $150. interest payable, $75.
Hodge Inc. has some material that originally cost $74,600. The material has a scrap value of $57,400 as is, but if reworked at a cost of $1,500, it could be sold for $54,400. What would be the incremental effect on the company’s overall profit of reworking and selling the material rather than selling it as is as scrap?
Hi- Attached is a balance sheet and income statement. I need a statement of cash flows in good form with T accounts.
i need solution pls http://www.deloitte.com/assets/Dcom-UnitedStates/Local Assets/Documents/us_10_3c_restructing_costs_080610.pdf Case 10-3 Restructuring Costs Pharma Co. is a U.S. subsidiary of a U.K. entity that prepares its financial statements in accordance with (1) U.S. GAAP for reporting to its U.S.-based lender and (2) IFRSs in reporting to its parent. Pharma Co. is in the process of restructuring a business line. As part of the restructuring, Pharma Co. is considering the relocation of a manufacturing operation from its present location to a new facility in a different geographic area. The relocation plan would include terminating certain employees. IAS 37 includes guidance for accounting for restructuring costs in accordance with IFRSs. Paragraph 10 of IAS 37 defines restructuring as follows: [A] programme that is planned and controlled by management, and materially changes either: a. the scope of a business undertaken by an entity; or b. the manner in which that business is conducted. Under IFRSs, emphasis is placed on the recognition of the costs of the exit plan as a whole, whereas under ASC 420-10 (Statement 146) in U.S. GAAP, each type of cost should be examined individually to determine when it should be accrued. As a result, there may be differences in timing of recognition of restructuring costs under IFRSs and U.S. GAAP. Pharma Co. has taken the following actions: 1. On December 15, 2008, Pharma Co. issued a press release announcing its intentions to terminate the lease of the old facility. The press release is included as Appendix A. Assume the terms of the lease are such that Pharma Co. accounts for the lease as an operating lease. Further, the lease agreement stipulates that written notice is required for early termination. 2. On December 27, 2008, Pharma Co. management communicated the main features of a one-time, nonvoluntary termination plan to its employees. The communication to the employees is included as Appendix B. 3. Pharma Co. will incur a relocation cost of $500,000 and staff training cost of $1.5 million. Further, Pharma Co. has entered into irrevocable contracts with certain other relevant parties to affect the restructuring plan over the following 18 months. 4. The cost to dismantle the existing manufacturing operation is estimated to be $1 million. In the jurisdiction in which Pharma Co. operates its current facility, there is no legal obligation for dismantling plants when abandoned. Pharma Co. has not historically dismantled its plants when abandoned but decided to make an exception. Copyright 2009 Deloitte Development LLC All Rights Reserved. Case 10-3: Restructuring Costs Page 2 The company has, in a press release, stated its intention to dismantle the existing operation. The costs to reassemble the operation in the new facility have not yet been finalized. Required: • In reporting to its U.K. parent under IFRSs, how should Pharma Co. account for the above restructuring program for the year ended December 31, 2008? • In reporting to its U.S.-based lender in accordance with U.S. GAAP, how should Pharma Co. account for the restructuring program for the year ended December 31, 2008? Copyright 2009 Deloitte Development LLC All Rights Reserved. Case 10-3: Restructuring Costs Page 3 APPENDIX A Press Release Pharma Co. Announces Early Lease Termination Tulsa – 12/15/2008 – Pharma Co., a leading pharmaceutical developer, today announced its plan to terminate the lease on its Plant A facility located in Bellvue, Oklahoma, as part of its management restructuring and cost-cutting measures. Earlier today, Pharma Co. entered into an oral agreement with the lessor to terminate the lease. The lease termination fee is $1.3 million. The lease agreement was originally entered into in February 2002 and provided for Pharma Co. to occupy 100 percent of a 146,300-square-foot building in the Bellvue area of Tulsa with a term of 10 years. Pharma Co. plans to vacate the Plant A facility on January 31, 2009, at which time it will sign the lease termination agreement. Copyright 2009 Deloitte Development LLC All Rights Reserved. Case 10-3: Restructuring Costs Page 4 Copyright 2009 Deloitte Development LLC All Rights Reserved. APPENDIX B Inter-Office Memorandum To: All Employees of Pharma Co. From: Gregory Seagate, Director, Human Resources **For internal distribution only** December 27, 2008 Today, the leaders of Pharma Co. have determined to discontinue the research and development of our line of Live4mor drugs, which was initially publicized as the company’s response to the market place’s demand for more drugs embodying the latest in anti-aging drug technologies. As a result of management’s decision to eliminate its activities pertaining to theLiv4mor line of drugs, we will be implementing a one-time nonvoluntary termination plan to reduce our workforce. Although management has not yet identified the specific employees to be terminated, the current restructuring plan involves a reduction of approximately 120 employees, which represents 10 percent of our workforce. The workforce reduction is expected to be completed by January 31, 2009, and is expected to cost approximately $2 million. Our president and chief executive officer, Catherine Smith, made the following remarks this morning, “The restructuring plan that we are announcing today is a painful but unavoidable action given the change in the company’s priorities and the competition in the market place. While we are still a financially strong company, the restructuring plan will better prepare us for the future.” Decisions will be communicated as soon as possible. In the meantime, please feel free to contact me with any questions or concerns. Gregory
I have attached the problems that I hope that you can solve for me!
Journalize the following selected transactions for April 2008 in a two-column journal. Journal entry explanations may be omitted. April 1 Received cash from the investment made by the owner, $14,000. 2 Received cash for providing accounting services, $9,500. 3 Billed customers on account for providing services, $4,200. 4 Paid advertising expense, $700. 5 Received cash from customers on account, $2,500. 6 Owner withdraws, $1,010. 7 Received telephone bill, $900. 8 Paid telephone bill, $900. Date Dr. Cr. April 1 April 2 April 3 April 4 April 5 April 6 April 7 April 8
“1. (TCO 3) Regional Bank offers you an APR of nine percent compounded quarterly, and local bank offer you an ear of 9.15% for a new auto loan you should choose; a. regional bank apr b. local bank ear c. regional bank ear d. local bank apr 2. (TCO 3) You deposited $11,000 in your bank account today. Which of the following will decrease the future value of your deposit, assuming that all interest is reinvested? Assume the interest rate is a positive value. Select all that apply: (Points: 4) a decrease in the interest rate increasing the initial amount of your deposit decreasing the frequency of the interest payments decreasing the length of the investment period 3. (TCO 7) Which one of the following statements concerning financial leverage is correct? The benefits of leverage are unaffected by the amount of a firm’s earnings. The use of leverage will always increase a firm’s earnings per share. The shareholders of a firm are exposed to greater risk anytime a firm uses financial leverage. Earnings per share are unaffected by changes in a firm’s debt-equity ratio. Financial leverage is beneficial to a firm only when the firm has minimal earnings. 4. (TCO 3) SmithKline Company’s bonds are currently selling for $1,157.75 per $1000 par-value bond. The bonds have a 10 percent coupon rate and will mature in 10 years. What is the approximate yield to maturity? 6.96% 7.69% 11.0% 12.1%
5. (TCO 8) Which of the following is true regarding bonds? Bonds do not carry default risk. Bonds are sensitive to changes in the interest rates. Moody’s and Standard and Poor’s provide information regarding a bond’s interest rate risk. Municipal bonds are free of default risk. None of the above is true 6. (TCO 8) Two years ago, Maple Enterprises issued six percent, 20-year bonds and Temple Corp issued six percent, 10-year bonds. Since their time of issue, interest rates have increased. Which of the following statements is true of each firm’s bond prices in the market, assuming they have equal risk? Maple’s decreased more than Temple’s Temple’s decreased more than Maple’s Maple’s increased more than Temple’s They are both priced the same 7. (TCO 6) A sinking fund is an account managed by a bond trustee for the sole purpose of: paying interest payments on a semi-annual basis. redeeming bonds early. repaying the face value at maturity. paying the expenses required to reissue outstanding bonds. paying the “balloon payment” at maturity.
What is the probability door number 3 contains a prize after to the host opening door number 5?
. (TCO1) The two types of accounting are:____ and _____ (Points: 5) profit and nonprofit. financial and managerial. internal and external. bookkeeping and decision-oriented. 2. (TCO2) A company purchased inventory on account. This transaction increased assets and: (Points: 5) increased equity increased liabilities increased revenues decreased assets 3. (TCO1) Which of the following statements is FALSE? (Points: 5) reliable data may be supported by objective evidence. the informed opinion of owners is an important source of objective evidence. an independent appraisal, conducted by a licensed professional, is usually considered reliable. reliable data are verifiable. 4. (TCO2) A company purchased office supplies for cash. This transaction ______________________. (Points: 5) increased assets and decreased assets. increased assest and increased liabilities. increased assets and increased revenues. decreased assets and decreased liabilities. 5. (TCO2) Which type of account is increased when a company records a debt? (Points: 5) expense retained earnings liability none of the above are correct. 6. (TCO2) A trial balance has which of the following features? (Points: 5) totals for balance sheet accounts only totals for income statement accounts only totals for all accounts listed in the general ledger both A and B are correct 7. (TCO3) A company started the year with $400 of supplies. During the year the company purchased additional supplies costing $1,600. There were $800 of supplies on hand at the end of the year. An adjusted trial balance prepared at the end of the accounting period will show the which of the following balance in Supplies: (Points: 5) $1,400. $800. $600. $0. 8. (TCO3) The book value of an asset is computed as: (Points: 5) the cost of a plant asset less accumulated depreciation. the cost of a plant asset plus accumulated depreciation. depreciation expense plus accumulated depreciation. the cost of a plant asset less depreciation expense. 9. (TCO5) Differences between the amount of cash reported on a company’s bank statement and the balance in the company’s Cash account before the bank reconciliation are primarily due to: (Points: 5) errors in the accounting process by the company. errors made by the bank. differences between the cash basis and accrual basis of accounting. timing difference in recording transactions. 10. (TCO5) Under the allowance method, the entry to reinstate an account previously written off: (Points: 5) increases total assets. increases net income and increases total assets. decreases net income and increases total assets. has no effect on net income or total assets. 11. (TCO5) Portia Incorporated uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,000,000, and management estimates 2% will be uncollectible. Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $1,900. The amount of expense reported on the income statement and the balance in Allowance for Uncollectible accounts, respectively, will be: (Points: 5) $41,900 and $40,000. $40,000 and $38,100. $38,100 and 40,000. $40,000 and $41,900. 12. (TCO5) If the Maturity Value of a 210 day note is $63,500 and the interest is $3,500, based on 10%, what is the principal of this note? (Points: 5) $ 3,500 $ 6,000 $63,500 $60,000 13. (TCO4) Deciding on which inventory method a company should use affects: (Points: 5) the profits to be reported. the income taxes to be paid. the values of ratios reported from the balance sheet. all of the above. 14. (TCO4) A company whose inventory consists of very unique items would probably use which inventory method? (Points: 5) first-in, first-out last-in, first-out specific unit cost weighted-average of only the unique items Time Remaining: 1. (TCO4) Which inventory method produces the highest net income in a time of rising costs? (Points: 5) FIFO. Average Cost. LIFO. KIFO. 2. (TCO6) All expenditures to repair and renovate an existing building for its intended use are charged to: (Points: 5) land. land improvements. land improvements expense. building. 3. (TCO6) Which of the following statements is false? (Points: 5) depreciation is a process of subjective valuation. depreciation is a non-cash expense. accumulated depreciation represents a growing amount of cash to be used to replace the existing asset. accumulated depreciation is that portion of a plant asset’s cost that has been recorded previously as an expense. 4. (TCO6) On January 10, 2006, Maxim Corporation acquired equipment for $124,000. The estimated life of the equipment is 3 years or 24,000 hours. The estimated residual value is $10,000. What is the balance of Accumulated Depreciation on December 31, 2007, if Baldwin Corporation uses the asset 5,500 hours in 2006 and 4,500 hours in 2007? (Points: 5) $76,000 $61,218 $52,083 $47,500 5. (TCO6) Valtrex Inc. sells a major plant asset. (Points: 5) depreciation expense should be recorded through the date of sale. the book value of the asset should be credited to the asset account. no gain should be recognized if depreciation expense was taken on the asset before the asset was sold. a loss should be recognized, but not a gain, if depreciation expense was taken on the asset before the asset was sold. 6. (TCO6) Current liabilities fall into two categories which are referred to as: (Points: 5) liabilities of a known amount and estimated liabilities. contingent liabilities and noncontingent liabilities. contingent liabilities and contra-liabilities. unearned liabilities and accrued liabilities. 7. (TCO7) In a corporation, the two-basic sources of stockholders’ equity are: (Points: 5) donated capital and contributed capital. par value and no-par value stock. preferred stock and common stock. paid-in capital and retained earnings. 8. (TCO7) When 100 shares of $10 par value Common Stock are sold at $53 per share, Paid-in Capital in Excess of Par value–Common will: (Points: 5) increase $1,000. increase $4,300. increase $5,300. not be affected. 9. (TCO7) The number of shares of treasury stock plus the number of shares outstanding equals the number of shares: (Points: 5) authorized that have not been issued. authorized. issued. issued that have not been reacquired by the company. 10. (TCO2) Consider the following transactions: I. Owners invested $8,000 cash to begin the business II. Provided services for cash, $6,000 III. Provided services on account, $4,000 IV. Paid cash for expenses, $7,500 How much cash does the business have? (Points: 5) $2,500 $4,500 $6,500 $10,500 ) Your friend, Jacob, has opened a movie theater. Jacob states that he does not have time to develop and implement a system of internal controls. a. Provide Jacob with the objectives of a system of internal control. b. Explain to Jacob why he should develop a system of internal control. (Points: 10) 2. (TCO6) Credit Company incurred the following costs in acquiring plant assets: • purchased land for a $50,000 down payment and signed a $100,000 note payable for the balance • delinquent property tax of $2,500 and legal fees of $1,500 • $5,000 to remove an unwanted building • architect fee of $2,000 for the design of a building • constructed an office building at a cost of $500,000 • interest cost on construction loan for the building, $20,000 • $7,500 for fencing, $4,000 for landscaping, and $5,000 for lighting Determine the cost of the land, land improvements, and building. (Points: 20) 3. (TCO2) List the steps in the Accounting Cycle. (Points: 20) 1. (TCO6) Block Company issued a $20,000, 10-year Bond on 7/1/2008, when the Market Interest Rate was 6.5%. Assume that the accounting year of Block Company ends on December 31. Journalize the following transactions. a. Issuance of the Bond on 7/1/2008 b. Accrual of the Interest Expense on 12/31/2008 c. Payment of Interest on 1/1/2009 d. Payment of the Bond at Maturity (Points: 20) 2. (TCO7) The Cosmo Company was started by issuing 800 shares of $10 par value stock at an average market price of $20 per share. The company repurchased 100 shares at a market price of $15 per share. The company later sold 50 shares at a market price of $25 per share. At the end of the first year of operations the company has $2,600 of retained earnings in addition to its contributed capital. Prepare the equity section of the balance sheet for Cosmo Company. (Points: 20) 3. (TCO1) The following information has been obtained from the accounting records of Sandy Shores Enterprises. Prepare the operating section of the statement of cash flows for Sandy Shores Enterprises for the year ended December 31, 2007, using the indirect method. Principal payments on long-term debt $50,000 Increase in accounts payable 24,300 Acquisition of equipment by issuing long-term note payable 70,000 Amortization expense 18,700 Proceeds from sale of investments, not including a $5,100 gain 49,100 Increase in accounts receivable 8,700 Cash payments to purchase plant assets 62,000 Decrease in accrued liabilities 60,300 Payment of cash dividends 64,500 Proceeds from sale of plant assets, not including a $7,400 loss 22,600 Net income 174,100 Depreciation expense 35,500 Proceeds from issuance of common stock 300,000 Increase in inventory 71,400 Bonds payable converted into common stock 130,000 Decrease in prepaid expenses 12,800 Cash balance: December 31, 2006 52,500 Cash balance: December 31, 2007 373,000 (Points: 20) 4. (TCO 1) The income statement for the OverUnder Company for the year ended December 31, 2007, appears below. Sales 670,000 Costs of goods sold 390,000 Gross profit 280,000 Expenses 180,000* Net income $100,000 *Includes $25,000 of interest expense and $20,000 of income tax expense. Additional information: a. Common stock outstanding on January 1, 2007, was 50,000 shares. On July 1, 2007, 10,000 more shares were issued. b. The market price of OverUnder’s stock was $18 at the end of 2007. c. Cash dividends of $35,000 were paid, $5,000 of which were paid to preferred stockholders. Part 1: Compute the following ratios for 2007 (show your work): a. Earnings per share. b. Price-earnings. c. Times interest earned. Part 2: Please explain the meaning of these ratios and the results you have calculated. (Points: 20)
Get college assignment help at uniessay writers Harvard Research issues bonds dated January 1, 2009, that pay interest semiannually on June 30 and December 31. The bonds have a $45,000 par value, an annual contract rate of 6%, and mature in 6 years. Required For each of the following three separate situations, (a) determine the bonds’ issue price on January 1, 2009, and (b) prepare the journal entry to record their issuance. Market rate at the date of issuance is 4%. Market rate at the date of issuance is 6%. Market rate at the date of issuance is 8%.
Hi I need answer only for Analyse question could you help me? I will attache my assigment
why are business transaction initially recorded in a journal?
Andrew transferred an office building that had an adjusted basis of $180,000 and a fair market value of $350,000 to Dickens Corporation in exchange for 80% of Dickens’ only class of stock. The building was subject to a mortgage of $200,000, which Dickens assumed for valid business reasons. The fair market value of the stock on the date of the transfer was $150,000. What is the amount of Andrew’s recognized gain?
Here’s the problem Finney Corporation purchased the following long -term investments in stock securities on 1-10-2008 10,000 shares of the 100,000 outstanding common shares of Dodd Corp for $400,000 3,000 shares of the 10,000 outstanding common shares of Carey Co for $135,000 6,000 shares of the 50,000 outstanding common shares of Kline co for $150,000 Other information Dodd Corp: 90,000 net income for 2008; 50,000 dividends declared and paid in 2008: 37 per share fair value at 12-31-08 Carey Co: 200,000 net income for 2008; 80,000 dividends declared and paid in 2008: 50 per share fair value at 12-31-08 Kline Co: 50,000 net income for 2008; 25,000 dividends declared and paid in 2008: 23 per share fair value at 12-31-08 Instructions: Prepare the journal entries for Finney Corp. to record the acquisitions of the long-term stock investments, the receipt of dividends, and any other necessary entries at year end on December 31, 2008. Assume that Finney Corporation’s ownership interest in each company remained constant throughout the year. Are the below entries correct? If they aren’t can you let me know what I did wrong 1/10/2008 Stock investments 400000 Cash 400000 1/10/2008 Stock investments 135000 Cash 135000 1/10/2008 Stock investments 150000 Cash 150000 9/1/2008 Cash 50000 Dividend Revenue 50000 9/1/2008 Cash 80000 Dividend Revenue 80000 9/1/2008 Cash 25000 Dividend Revenue 25000 12/31/2008 Unrealized Loss – Income 27000 Market Adjustment – Trading 27000 Investment Cost Fair Value Unrealized Gain(Loss) Dodd Corporation 400000 370000 -30000 Carey Corporation 135000 150000 15000 Kline Corporation 150000 138000 -12000 685000 658000 -27000
The Jarvis Corporation produces bucket loader assemblies for the tractor industry. The product has a long term life expectancy. Jarvis has a traditional manufacturing and inventory system. Jarvis is considering the installation of a just-in-time inventory system to improve its cost structure. In doing a full study using its manufacturing engineering team as well as consulting with industry JIT experts and the main vendors and suppliers of the components Jarvis uses to manufacture the bucket loader assemblies, the following incremental cost-benefit relevant information is available for analysis: The Jarvis cost of investment capital hurdle rate is 15%. One time cost to rearrange the shop floor to create the manufacturing cell workstations is $275,000. One time cost to retrain the existing workforce for the JIT required skills is $60,000. Anticipated defect reduction is 40%. Currently there is a cost of quality defect assessment listed as $150,000 per year. The setup time for each of the existing functions will be reduced by 67%. Currently the forecast for setup costs are $225,000 per year. Jarvis will expect to save $200,000 per year in carrying costs as a result of having a lower inventory. The suppliers will require a 15% premium over the current level of prices in order to position themselves to supply the material on a smaller and more frequent schedule. Currently the materials purchases are $1,500,000 per year. Required: Determine whether it is in the best interest of Jarvis Corporation to install a JIT system.
Fashions, Inc. is a retail store that sells sweaters and jackets. In the past, it has bought all its sweaters from a supplier for $20 per unit. However, Fashions has the opportunity to acquire a small manufacturing facility where it could produce its own sweaters.The projected data for producing its own sweaters are as follows: Sales Price = $30 Variable Cost = $15 Fixed Cost = $150,000 Required 1)If Fashions acquired the manufacturing facility, how many sweaters would it have to produce in order to break even? 2)To earn an after tax profit of $125,000, how many sweaters would Fashions have to sell if it buys the sweaters from the supplier? If it produces its own sweaters? Fashion’s tax rate is 30%. 3)Fashions, Inc. is indifferent between the two alternatives at sales of how many units (ignore income tax effects)? Show a computation of operating income to prove your answer.
Maverick Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Work in process, beginning: Units in beginning work in process inventory 400 Materials costs $6,900 Conversion costs $2,500 Percent complete for materials 80% Percent complete for conversion 15% Units started into production during the month 6,000 Units transferred to the next department during the month 5,600 Materials costs added during the month $112,500 Conversion costs added during the month $210,300 Ending work in process: Units in ending work in process inventory 800 Percent complete for materials 70% Percent complete for conversion 30% Required: calculate the equivalent units for materials for the month in the first processing department.
according to the FASB’s conceptual framework, the process of reporting an item in the financial statements of an entity is?
Rodney, the sole shareholder of a calendar year, accrual basis C corporation, loaned the corporation a substantial amount of money on January 1, 2009. The corporation accrued $25,000 of interest expense on the loan on December 31, 2009. It pays the interest to Rodney, a cash basis taxpayer, on February 1, 2010. Under these facts:
(TCO D) Total payroll of Watson Co. was $920,000, of which $160,000 represented amounts paid in excess of $100,000 to certain employees. The amount paid to employees in excess of $7,000 was $720,000. Income taxes withheld were $225,000. The state unemployment tax is 1.2%, the federal unemployment tax is .8%, and the F.I.C.A. tax is 7.65% on an employee’s wages to $100,000 and 1.45% in excess of $100,000.
The post On December 31, 2007, the payee on a $4,500, 120-day, 10% appeared first on uniessay writers.